He said some statutory bodies are required to refer to the finance ministry for approval before making investments, reported Bernama.

He said government-linked investment companies (GLIC), such as EPF, the Retirement Fund Incorporated (KWAP) and Lembaga Tabung Haji, are mandated to engage in investments as a core activity.

As such, they possess a team of officers skilled in managing investment portfolios.

“Therefore, GLICs are generally allowed to invest in a broad range of investments, including options, private equity and overseas investments,” he told the Dewan Rakyat during Minister’s Question Time today.

He was replying to a question from Wong Shu Qi (PH-Kluang) who wanted to know whether federal statutory bodies and non-statutory bodies were allowed to invest in options, private equity and the foreign exchange.

Amir said there are associated risk controls and governance to reduce the risk of investment losses.

For instance, he said KWAP requires the finance ministry’s approval in appointing investment panel members and to make investments in assets such as buildings and private equity. The ministry also limits the percentage of investments that can be made abroad.

“GLICs with the expertise focus on investments that can bring high returns, such as equities, money markets, debentures and securities,” he said.

In response to a supplementary question from Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) regarding the ministry’s preparedness to enact new laws or amend existing ones to enhance governance of statutory bodies under its purview, Amir said the ministry consistently monitors current trends to determine whether improvements were necessary.

“For now, what’s important is we place those with the right capabilities on these investment panels and board of directors. That is our primary control mechanism.

“We hope they will carry out their fiduciary duties properly. If they’re not able to do so, then we will find a way to replace them with better people,” he said.